forwarded from Ian Murray.

Subject: USTR Releases 2004 Inventory of Foreign Trade Barriers
Date: Thu, 01 Apr 2004 14:36:15 -0500
From: Trade-Facts <[EMAIL PROTECTED]>

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON, D.C.
20508

FOR IMMEDIATE RELEASE:
CONTACT: RICHARD MILLS/NEENA MOORJANI
April 1, 2004  (202) 395-3230


USTR Releases 2004 Inventory of Foreign Trade Barriers

Market by Market, U.S. Free Trade Pacts Complement Global Efforts to
Reduce U.S. Export Barriers

WASHINGTON - The Office of the United States Trade Representative today
released its 2004 annual report documenting foreign trade barriers to
U.S. exports and U.S. efforts to reduce and eliminate those barriers.

"The United States benefits from being a relatively open economy, but
American workers, exporters, farmers and businesses continue to face
barriers for our world-class goods and services," said U.S. Trade
Representative Robert B. Zoellick, regarding the National Trade Estimate

(NTE) Report on Foreign Trade Barriers. "Day-in and day-out, all around
the world, the U.S. government is working aggressively to make sure
barriers to U.S. goods and services are removed.  The NTE report is a
useful inventory of global trade barriers to understand what has been
accomplished and what more needs to be done."

"We employ a variety of tools to make sure Americans are treated fairly,

from consultations to negotiations to litigation.  Trade liberalization
itself provides a win-win opportunity to lower barriers and promote
economic growth and development," Zoellick said. "Our new and pending
FTA partners represent America's third largest export market -- these
FTAs are stripping away trade barriers across-the-board,
market-by-market, and expanding American opportunities."

"Enforcement of existing trade agreements is a vital complement to
producing new ones.  Indeed, enforcement is inherently connected to the
process of negotiating new agreements," added Zoellick.  "Virtually
everything USTR does is connected with enforcement in some way.
Negotiations to open markets and enforcement are two sides of the same
coin."

The NTE includes a list of barriers and unfair trade practices to
American exports of goods, services, and farm products. In addition to
limiting commercial opportunities for U.S. businesses, these barriers
undermine the substantial potential gains from trade among developing
countries. The NTE covers 58 major trading partners in each region of
the world and profiles policies restricting market access. This year's
report highlights the global effort to reduce or eliminate those
barriers, and notes in particular the effect of the FTA negotiations the

U.S. held or plans to hold, as well as top areas of concern related to
intellectual property rights (IPR) protection and sanitary and
phytosanitary (SPS) measures. The NTE notes many examples where
countries have reduced or eliminated trade barriers described in earlier

reports.

Active monitoring of compliance with trade agreements together with
vigorous enforcement helps ensure that these agreements yield the
bargained-for benefits for Americans, advancing the rule of law
internationally and creating a fair, open, and predictable trading
environment.  We address trade barriers using a number of tools -
consultation, negotiation and litigation. Past examples of enforcement
successes include rulings against Canada's prohibited export subsidies
on dairy products, India's restrictions on U.S. exports of auto
assemblies and an agreement with Argentina resolving many of the issues
raised in our dispute over aspects of its intellectual property regime.
  Recently, the United States obtained a favorable dispute ruling
against Japan on its restrictions on imports of apples and favorable
preliminary findings against Mexico on its telecommunications regime.
Ongoing enforcement actions involve Canada's restrictions on wheat,
China's discriminatory tax on semiconductors, Egypt's excessive textile
tariffs, the EU's moratorium on biotechnology products, the EU's
discriminatory regime on geographical indications, Mexico's antidumping
measure on rice and Mexico's discriminatory soft drink tax.

As required by the Omnibus Trade and Competitiveness Act of 1988, USTR
prepares the NTE Report in close consultation with other U.S. Government

agencies, based on the Administration's monitoring program and
information provided from the public and private sector trade advisory
committees. This year, as in the past, the USTR solicited public
comments and, in response, 52 groups filed submissions. U.S. Embassies
also participated actively in the preparation of the report and provided

critical input based on the experience of U.S. exporters abroad. In
addition, these barriers are the subject of consultation with the
Congress throughout the year.

Each year, 30 days after the NTE report is submitted to Congress USTR
issues the Special 301 report, which catalogues the IPR problems in
dozens of countries around the world and places them in a hierarchy
ranging from the lowest ranking of Watch List to the mid-level Priority
Watch List to the ranking reserved for the worst offenders, Priority
Foreign Country.  All the IP-related issues noted in the NTE report will

be considered during the Special 301 process.  In addition, next week,
USTR will announce the results of its 1377 Review, a more in-depth
analysis of barriers in foreign telecommunications markets and
compliance with trade commitments specific to this sector. In each of
these exercises the information contained in the NTE figures prominently

in the deliberation required.

The NTE report can be found using the following weblink:
http://www.ustr.gov/reports/nte/2004/index.htm

###

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Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901

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